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8/9/2019 credit card and debit card working
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Credit card and Debit card
Working and ManagementGROUP NO:7
Aditya Pande
Anurag GoyalMrugesh Chikhalikar
Suchet Pajni
Vishal Patel
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Introduction to plasticmoney
!olution o" plastic cards
Plastic money # A ne$ and easier $ay o" paying "or goods
and ser!ices
Pro!ides con!enient usage along$ith incenti!es
An alternati!e to hire%purchase or loan on consumer goods
It&ho$e!er&allo$s debt to pile%up that can lead to penalties
Major types of plastic money # Credit cards& Debit
cards & Charge cards&co%branded cards
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'o$ Did It All (egin) Debit cards
Introduced around *+,,% *+,-
.he launch highlighted the introduction o" e%
commerce and alternati!e means o" payment
Credit cards
Introduced in *+-0 by Central (1I
(anks acted as clearing houses "or transactions and
promoted their o$n brands
Addition o" magnetic strip introduced to enhance
security measures
2aunch o" A.M machines "or ready access
Present scenario % A household name
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Credit cards
A part o" a system o" payments a"ter the small plastic cardissued to users o" the system
A card entitling its holder to buy goods and ser!ices based
on the holder3s promise to pay "or these goods and ser!ices
.he issuer o" the card grants a credit to the consumer "rom$hich the user can borro$ money "or payment to amerchant
Most credit cards are issued by local banks or credit unions&and are the shape and si4e%-5670 8 596+- mm%IS1:IC,-*0 standard
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Credit cards
*6 Issuing bank logo
;6 MV chip on
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Credit card numbering
(ank Identi@cation ?umber
(I?% @rst si> digits "or MasterCard and Visa cards
?e>t nine digits%indi!idual account number
inal digit%!alidity check code
Issue and e>piration dates& e>tra codes such as issuenumbers and security codes
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Credit card numbering
An e>ample o" the re!erse side o"a typical credit cardB
*6 Magnetic Stripe
;6 Signature Strip
96 Card Security Code
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'o$ credit cards $ork
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.ransaction steps
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Parties in!ol!ed
Cardholder
Card%issuing bank
Merchant Acuiring bank
Credit Card association
.ransaction net$ork
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elated terms
Interest charges
(ene@ts to customers
Grace period (ene@ts to merchants
e$ards
Interchange "ee
Discount "ee
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Debit Card
Pro!ides an alternati!e payment method to cash $henmaking purchases
unctionally& it can be called an electronic check& as the"unds are $ithdra$n directly "rom either the bank account&
or "rom the remaining balance on the card
It is also kno$n as bank card orcheck card
Allo$ "or instant $ithdra$al o" cash& acting as the A.M card"or $ithdra$ing cash and as a cheue guarantee card
Merchants can also oEer
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Debit Card ?umbering
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Debit Card ?umbering
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'o$ Debit Cards $ork
*6 Collecting payment data;6 Authentication96 Authorisation=6 Settlement o" "unds
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Some important tipsFDos
Pre"er a debit card o!er a credit card
Hno$ all o" your cards hidden "ees
Al$ays pay more than the minimum each month
Pay on time& all the time
Donts
Dont use them "or cash ad!ances
Dont use them to pay "or basicsB rent& groceries&etc6
Dont charge more than you can pay oE in a month
Dont let banks increase you credit limit
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'o$ are they diEerent)
Credit Card (orro$ing money "rom
a bank or @nancial
institution6 Spending
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Thank You!